IE Group News

Communications companies facing India dilemma

Thu, 2 Sep 2010 09:43:27 +0100

Global telecommunications firms such as Blackberry, Skype and Google are being demanded to supply “access to everything" by Indian authorities. Talks between Blackberry manufacturer Research in Motion (RIM) and Indian security forces have already taken place exploring ways to monitor data, and the company were given an extra 60 days to provide a solution having originally been handed a ban.
India’s decision to allow RIM a further 60 days to provide a solution was influenced by the fact that Delhi is hosting the Commonwealth Games in October. A ban would have provided serious communication problems during the games, something which the Indian authorities were keen to avoid. However, despite the postponement of the ban, India expects an answer by the end of the period.
RIM is proposing setting up a server in India as part of the solution. However, they also state that locating its servers locally would make no difference. "All data remains encrypted at all times," it said. "Locating Blackberry infrastructure in a particular geography does not in any way aid or offer access to the encrypted information that flows through the Blackberry infrastructure." RIM has said that it "does not possess a 'master key'”, explaining that this is crucial for maintaining security for users.
The firm said that singling out and banning Blackberry would be "ineffective and counter-productive" and claimed that many other networks and companies use similar encryption techniques. They said that finding a solution to meet the needs of governments and prevent the misuse of encryption was an industry-wide problem and whilst they would support the country's need for "lawful access, they maintain that they do not do specific deals with countries.
The government’s new stance on snooping powers is largely due to their increased fear of terrorism. They have said that they require access to messages in order to counter terrorists and criminals effectively. Whilst Blackberry has been the main target so far, the squeeze is expected to affect Google and Skype. Google use powerful encryption in its Gmail service, whilst Skype has a similar issue to Blackberry, as it uses a proprietary protocol. An Indian Home Ministry official said that "any company with a telecoms network should be accessible" and that "it could be Google or Skype, but anyone operating in India will have to provide data."

Going Green - reducing the size of beer cans and keeping beer enthusiasts happy

Thu, 26 Aug 2010 17:25:04 +0100

As the public becomes more aware of environmental issues and global warming, we can expect consumers to ask more questions about the products they are buying such as how green their manufacturing processes and supply chain are, their carbon footprint and how they recycle. In the case of most companies, the supply chain represents 75% of the firm’s carbon footprint, so the role of supply chain practitioners in understanding carbon impacts, calculating and modeling carbon usage strategies, improving operations and reducing carbon utilization is paramount to achieve sustainability success.

Some companies have seen that this not a bad thing and have been able to convert the public’s interest in all things green into increased profits. A number of companies have shown that there is a proof of the link between improved environmental performance and financial gains. Companies have looked to their supply chain and seen areas where improvements in the way they operate can produce profits.

Most people don’t expect much in the way of environmental awareness from their beer company, but that hasn’t stopped Anheuser-Busch from delivering. In his landmark text “Natural Capitalism”, author Paul Hawken shines light on the fact that Busch now saves 21 million pounds of metal per year by trimming an eighth of an inch off the diameter of its beer cans. The best news for beer enthusiasts? “The trimming doesn’t reduce the volume of beer one bit”, says Hawken.

In the next several years you will be hearing more about Supply Chain Sustainability or the Green Sustainable Supply Chain. A Green Sustainable Supply Chain can be defined as "the process of using environmentally friendly inputs and transforming these inputs through change agents - whose byproducts can improve or be recycled within the existing environment. This process develops outputs that can be reclaimed and re-used at the end of their life-cycle thus, creating a sustainable supply chain." The whole idea of a sustainable supply chain is to reduce costs while helping the environment.

Despite the public’s focus on the environment, benefits attributed to reducing a company’s environmental impact are not in the forefront of supply chain executive’s minds. Many people would argue that being environmentally friendly increases your costs. It appears that many executives are still unaware that improved environmental performance means lower waste-disposal and training costs, fewer environmental-permitting fees, and, often, reduced materials costs. Companies can find cost savings by reducing the environmental impact of their business processes. By reevaluating the company's supply chain, from purchasing, planning, and managing the use of materials to shipping and distributing final products, savings are often identified as a benefit of implementing green policies.

Hopefully the interest in green issues and environmental concern by the public will not wane as economic issues become more important due to the faltering economy.

The IE Group prides itself on being a paper-free company.

A market to keep an eye on....

Thu, 26 Aug 2010 17:24:25 +0100

China has become one of the largest pharmaceutical producers in the world. However, the supply chains that serve the industry remain complex and inefficient. Problems include lack of nationwide, large-scale distribution networks; industry fragmentation and too many small pharmaceutical manufacturers; lack of supply chain integration; outdated manufacturing technology and management structure; poor IT systems; and irregular activities. The Chinese pharmaceutical industry also has a lower market concentration and weak international trading competitiveness, coupled with a lack of patented pharmaceuticals developed in-house.

The advantages of business investment in the country include the vast consumer demand for pharmaceuticals, the lower labor costs and the changes resulting from economic reform. Non-Chinese pharmaceutical manufacturers can capture business opportunities in China by establishing wholly non-Chinese-owned pharmaceutical companies and produce pharmaceuticals with in-house patent rights. Another way is to buy existing pharmaceutical companies, and produce goods using pharmaceuticals developed in-house, substituting for older agents.

Novartis is betting big on China. Last year the Swiss pharmaceutical giant announced plans to invest $1.25 billion in a pair of Chinese R&D centers over the next five years. Novartis will put $250 million into a new R&D center and manufacturing facility in Changshu, a city near Shanghai, and another $1 billion to add 1,000 researchers at an existing center in Shanghai. Research and development is rapidly increasing with Shanghai becoming one of the most important global centers.

The international competition will place an intense pressure on the Chinese pharmaceutical industry and further open the door to a lucrative market for non-Chinese companies, especially for pharmaceutical producers and manufacturers. The Chinese Government has invested in medical care sector following the launch of national new medical reform policy, so China’s pharmaceutical industry remains a sound development.

The IE Group will be holding Pharma Strategy & Business Innovation summit in January 2011, for more information on this please contact Henrique on hsantiago@theiegroup.com
Also, view presentations from the previous events by joining the network at: http://network.theiegroup.com

Brazil is hotting up and not because of the sun!

Thu, 26 Aug 2010 17:23:15 +0100

Brazil is the hot market of the moment because it is one of the fastest to emerge from the global recession. It is the world's 10th largest economy and is blooming due to a stable currency; a growing, consumption-oriented middle class; and a gross domestic product expected to rise at 4% to 5% per year over the next 10 years. According to a recent survey, nearly one-third of finance chiefs are considering international market expansion over the next two years in Brazil.

It's no surprise that The weak recovery in the United States and Europe makes the promise of growth in Latin America very enticing.

However, finance chiefs and other experts who have been in the market for years warn that Brazil's tax and legal systems are among the world's most convoluted. Finance chiefs love to complain about taxes the world over, but Brazilian taxes are in a class of their own. Some say it's right up there with the most complicated tax system in the world.

A thicket of labor laws can also ensnare unsuspecting businesses, and corruption and personal security remain much more significant concerns than in more-fully developed markets. Yet despite these serious risks, Brazil, as Latin America's biggest market is attracting CFOs' attention. Companies are considering partnerships in other Latin American countries that might provide entree to Brazil as a way of avoiding the crippling import taxes.

A necessity for any finance chief preparing to establish a presence in Brazil is a strong local tax team and strong internal experts as well as sophisticated external advisers.

The CFO of SAP Latin America states, "Brazil is an interesting and unique blend of opportunity and risk,".

The IE Group’s next event in Brazil is Supply Chain Finance, for more information on this please contact Henrique on hsantiago@theiegroup.com

Also, view presentations from the last event by joining the network at: http://network.theiegroup.com

Using social media in business

Thu, 26 Aug 2010 17:21:27 +0100

A 2009 study shows that approximately two-thirds of advertisers used social media marketing in their marketing strategy. Organizations increasingly use social media like Facebook or Twitter to market products and services. However, many organizations are struggling to understand how to implement social media as part of an integrated marketing strategy.
Many executives may remain skeptical that the use of social media in the workplace is anything other than a distraction. It is companies that forbid or severely restrict the modern communications technologies that may miss out on assorted opportunities.

Advantages of using social media:

•Can drive productivity, customer service, and profits 

•Easily accessible to anyone 
•Facilitate conversations with the customer 
•Increase brand awareness 
•It is a relatively inexpensive platform for organizations to implement marketing campaigns 
•Organizations can receive direct feedback from their customers and targeted markets 

Forrester Research recently surveyed over 300 information-technology staffers who use social media for their organizations.

Over seventy percent of the respondents said social media positively affected productivity in the front office, 70% said it makes IT operations more productive, and 61% said it makes the back office more productive. Only 46%, however, saw a positive influence on marketing.

To flourish in this environment, businesses must integrate a comprehensive strategy for growing and retaining consumers. This means putting a marketable brand in front of the target audience, wherever they may be.

Is Your Organization Redefining The Role of Chief Supply Chain Officer?

Thu, 26 Aug 2010 17:20:48 +0100

SCM World (a RaptureWorld Company) released the 2010 Chief Supply Chain Officer Report - a survey of 400 senior global supply chain and procurement executives.

The report has been designed and developed to draw out critical insights that drive C-level supply chain executives in 2010 and beyond.
With such a rapidly shifting macro economic climate, the report uncovers how companies are redefining the role of the supply chain officer, and in turn how those executives are positioning their organizations to remain competitive in an increasingly globalized and complex operating environment.

The key findings of the report show that nearly 50% of respondents will be increasing investment in supply chain related technology this year. The number one issue driving the focus on Supply Chain Management within organizations is responding to customer and demand volatility, said 54% of respondents.
In this study, Best-in-Class firms are 50% more likely than all others to have an executive position with end-to-end SCM responsibility. Even though 81% of Best-in-Class companies report having a centralized supply chain organization, only 34% of these companies have a Chief Supply Chain Officer.

Oliver Sloane, Co-CEO of RaptureWorld says 'It is clearly a fact that the most forward thinking organizations have, or are in the process of, positioning a supply chain role at the very highest level within their company. The centrality of the supply chain to competitive advantage is key, and whilst the tough market conditions of the last 18 months may have changed the emphasis and focus within individual supply chain organizations, they have only served to further cement the significance of the function as a whole to the overall performance of global businesses.'

Download the full report here (http://www.scmworld.org/?page=cscoreport)

Is your organization in the process of or planning to redefine the role of Chief Supply Chain Officer?

Are there any surveys conducted that summarize the state of business for CPG?

Thu, 26 Aug 2010 17:19:36 +0100

Questions in the survey may include:

Where does forecasting report?
Are there multiple forecasts in your company?
What level are your demand planners in the organization?
What is their background?
How far out is the forecasting?

If not, is this something that you would be interested in?

pcurtis@theiegroup.com

IEG needs you!

Thu, 26 Aug 2010 17:17:17 +0100

We are looking for members who want to write for our group.  A question for our members – what are some of the topics you would like to read about?  Whether you wrote a book, publish a blog, or you are a first time writer – give it a try. Share your expertise with your fellow group members.
 Send me a brief note about what you would like to write about.
pcurtis@theiegroup.com

Too little too late for Microsoft?

Thu, 26 Aug 2010 17:16:02 +0100

Microsoft will restructure to shake up its struggling consumer devices division as the company tries to keep up with Apple and Google in the fast-growing smartphone market. The chief of its division, Robbie Bach, focused on mobile phones, videogames and other consumer devices is to retire and will not be replaced. Instead the heads of the two units in charge of games and phones will report directly to chief executive Steve Ballmer.
The company is losing ground fast in mobile and smartphones. Only 10 per cent of smartphones sold in the US in the first three months of this year run Windows software, according to retail research firm NPD Group. That is well behind Apple with 21 per cent, Google with 28 per cent and BlackBerry-maker Research in Motion Ltd with 36 per cent.
Microsoft needs to regain momentum in the mobile computing sector as Apple’s iPad and a host of competing slate or tablet devices are poised to reshape the software industry. (sourced from timesonline)
For more information on High Tech news visit: http://network.theiegroup.com/

Sweet return from Hotel Chocolat

Wed, 16 Sep 2009 15:40:38 +0100

Hotel Chocolat, the upmarket confectioner, wants to raise £5m to fund its expansion by selling “chocolate bonds” to its most loyal customers.
The sweet investment opportunity will be marketed to members of Hotel Chocolat’s Tasting Club, who pay for regular home deliveries of its premium chocolates. The scheme has been approved by the Financial Services Authority, the City watchdog.
The company, which has a factory in Huntingdon, Cambridgeshire, has appointed BDO, the accountant, to advise on the issue of the bonds, which will pay interest in chocolate.
Chocoholics can subscribe for a three-year, £2,000 bond, which will deliver a “tasting box” of chocolate worth about £18 every two months — equivalent to a 6.7% yield. There is also a three-year, £4,000 bond that will provide a chocolate box every month, a 7.29% yield.
The move is similar to the initiative undertaken by The Kings of Shaves Company last year, which issued "shaving bonds" to potential investors to expand the business. At which time financial analysts warned that the unlisted, unregulated and illiquid nature of the shaving bonds made them more of a "gamble than a savings opportunity".
The company's co-founder Angus Thirlwell told The Times "we would rather pay interest to our customers than a bank". The company is on track to deliver a 20% rise in turnover to more than £50m this year.
The money raised will help to expand the high street chain from 42 to 72 shops, enlarge the Huntingdon factory, develop a new cocoa plantation in St Lucia and expand the business overseas. (sourced from thetimesonline)

Are bond saving schemes a successful way to fund expansion?

For the latest news, ideas and events visit:
http://www.theiegroup.com

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Mon, 7 Sep 2009 17:18:20 +0100

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